ASSIGNMENT

DRIVE FALL 2013

PROGRAM MBADS / MBAHCSN3 / MBAN2 / PGDBAN2 / MBAFLEX

SEMESTER I

SUBJECT CODE &

NAME

MB0041 & FINANCIAL AND MANAGEMENT ACCOUNTING

BK ID B1624

CREDIT 4

MARKS 60

Q.No Criteria Marks Total Marks

1 Inventory in a business is valued at the end of an accounting period, at either cost or market price,

whichever is lower. This is accepted convention or a practice in accounting.

Give a small introduction on accounting conventions and elucidate all the eight accounting

conventions.

A

Introduction of accounting convention

Explanation of all the 8 types of conventions

2

8

10

2 Write down a table with the accounts involved / the nature of account/its affects/ debit or

credit. Please have the transactions given below and prepare the table as per the instructions given above

for each transaction.

a. 1.1.2011 Sunitha started his business with cash Rs. 5,00,000

b. 2.1.2011 Borrowed from Malathi Rs. 5,00,000

c. 2.1.2011 Purchased furniture Rs. 1,00,000

d. 4.1.2011 Purchased furniture from Meenal on credit Rs. 1,50,000

e. 5.1.2011 Purchased goods for cash Rs. 50,000

f. 6.1.2011 Purchased goods from Ram on credit Rs. 2,50,000

g. 8.1.2011 Sold goods for cash Rs. 1,25,000

h. 8.1.2011 Sold goods to Shyam on credit Rs. 55,000

i. 9.1.2011 Received cash from Shyam Rs. 25,000

j. 10.1.2011 Paid cash to Ram Rs. 90,000

A Filling in all the details in the table for all the

transactions. Each transaction carries one

mark(1*10=10)

10

10

3 From the given trial balance, draft an Adjusted Trial Balance.

Trial Balance as on 31.03.2013

Debit balances Rs. Credit balances Rs.

Furniture and Fittings 15000 Bank Over Draft 16000

Buildings 500000 Capital Account 400000

Sales Returns 1000 Purchase Returns 4000

Bad Debts 2000 Sundry Creditors 35000

Sundry Debtors 25000 Commission 5000

Purchases 90000 Sales 235000

Advertising 20000

Cash 10000

Taxes and Insurance 5000

General Expenses 7000

Salaries 20000

TOTAL 695000 TOTAL 695000

Adjustments:

1. Charge depreciation at 10% on Buildings and Furniture and fittings.

2. Write off further bad debts 1000

3. Taxes and Insurance prepaid 2000

4. Outstanding salaries 5000

5. Commission received in advance1000

A Preparation of all the ledger a/c’s

Preparation of adjusted trial balance as on 31.3.2013

5

5

10

4 The reports prepared in financial accounting are also used in the management accounting. But

there are few major differences between financial accounting and management accounting.

Explain the differences between financial accounting and management accounting in various

dimensions.

A Writing down all the differences between the

financial and management accounting

10 10

5 Draw the Balance Sheet for the following information provided by Sandeep Ltd..

a. Current Ratio : 2.50

b. Liquidity Ratio : 1.50

c. Net Working Capital : Rs.300000

d. Stock Turnover Ratio : 6 times

e. Ratio of Gross Profit to Sales : 20%

f. Fixed Asset Turnover Ratio : 2 times

g. Average Debt collection period : 2 months

h. Fixed Assets to Net Worth : 0.80

i. Reserve and Surplus to Capital : 0.50

A Preparation of Balance sheet (Includes all the ratios)

10 10

6 Write the main differences between cash flow analysis and fund flow analysis.

Following is the balance sheet for the period ending 31st March 2011 and 2012. If the current

year’s net loss is Rs.38,000, Calculate the cash flow from operating activities.

31st MARCH

2011 2012

Short-term loan to employees 15,000 18,000

Creditors 30,000 8,000

Provision for doubtful debts 1,200 -

Bills payable 18,000 20,000

Stock in trade 15,000 13,000

Bills receivable 10,000 22,000

Prepaid expenses 800 600

Outstanding expenses 300 500

A Differences between cash flow and fund flow

analysis

Preparation of statement showing cash flow from

operating activities

4

6

10

*A-Answer

Note –Answer all questions. Kindly note that answers for 10 marks questions should be approximately of

400 words. Each question is followed by evaluation scheme.